Former news anchor charged with fraud in massive scheme to help small businesses receive Covid-19 relief funds

A former Arizona television anchor and her husband face life in prison if convicted of their roles in a scandal aimed at fraudulently obtaining government funds to combat COVID-19.

Stephanie Hockridge-Reis, 41, and her husband, Nathan Reis, 45, were charged with one count of conspiracy to commit wire fraud and four counts of wire fraud, the Justice Department announced Friday. .

If convicted, the couple could face up to 20 years in prison on each count.

The couple allegedly submitted false and fraudulent applications for Paycheck Protection Program loans on behalf of themselves and their Blueacorn business.

Hawkridge-Reis and Reis co-founded the company in April 2020 after Hawkridge-Reis left her post at ABC affiliate Channel 15 KNXV-TV, a position she held for seven years.

The couple’s company was founded with the goal of helping small businesses and individuals obtain PPP loans.

The indictment unsealed Friday alleges the couple falsified documents they submitted on their loan applications to obtain loan funds they were not entitled to, according to court documents.

Additional investigation into the couple revealed that they reportedly charged their clients illegal fees for their services based on a percentage of the funds received, the Justice Department said.

Hawkridge-Reis and Reis were also accused of attempting to directly charge some applicants a 10 percent fee for successfully obtaining a loan, a violation of Small Business Administration regulations.

A credit check revealed what the couple was willing to do for the money, including Race’s claim on the application that he was African American and a veteran.

Other evidence showed Hawkridge-Reis describing the PPP as “$100 billion in free money.”

However, even though the PPP loans were created for small businesses, Hawkridge-Reis allegedly told her employees, “Why the hell care.” We’re not the first bank to turn away borrowers who deserve financing… They may go elsewhere.”

The U.S. Small Business Administration has guaranteed assistance to keep businesses afloat during the COVID-19 pandemic through the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act.

The DOJ also alleges that the couple hired people to work as referral agents who reportedly coached borrowers on how to submit false PPP loan applications.

As part of the alleged scheme, the duo collected and reviewed applications from potential borrowers on behalf of lenders.

The couple then worked with lenders to file applications with the U.S. Small Business Administration in exchange for a percentage of fees paid to lenders, the Justice Department said.

Hawkridge-Reis was summoned to appear in court in Dallas, Texas on November 25.

The couple’s lawyer could not be reached for comment.